Singapore stock preview: Keppel, Mapletree, Sri Trang Gloves
Here are three SGX-ST mainboard stocks to note for the week of 31 May 2021.
- Keppel Corp Ltd share price is down slightly on Monday (31 May 2021), after its property unit announced a S$21.6 million acquisition
- Sri Trang Gloves (Thailand) share price declines 2.2% at opening following an update on Covid-19 infections at its factories
- Mapletree North Asia Commercial Trust will acquire an office building located in Tokyo, Japan, for S$474.7 million
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Keppel Corporation (SGX: BN4)
Keppel Land Limited, through its wholly-owned subsidiary, VN Prosperity Pte. Ltd., is acquiring a 60% interest in Phuoc Kien Construction Investment Joint Stock Company for a total consideration of VND367.5 billion (approximately S$21.6 million).
Phuoc Kien Construction Investment Joint Stock Company holds a land parcel in Nha Be district, Saigon South, Ho Chi Minh City (HCMC). Both companies plan to jointly develop approximately 40 landed homes on the 1.5-hectare site.
The total development cost for the project, inclusive of land cost, is expected to be in excess of VND 800 billion (approximately S$47.1 million).
Keppel Land also announced on 28 May 2021 that it has issued S$280 million in aggregate principal amount of 2.00% notes due in 2026.
Keppel Corporation shares are down 0.37% as at 11:15 SGT on Monday.
Mapletree North Asia Commercial Trust (SGX: RWOU)
Mapletree North Asia Commercial Trust Management Ltd., the manager of Mapletree North Asia Commercial Trust (MNACT), has entered into a conditional sale and purchase agreement for MNACT to acquire a 98.47% share in a freehold office building located in Tokyo.
MNACT will purchase the single-tenanted building, currently 100% leased to Hewlett-Packard Japan, from Hulic Co., Ltd, subject to various conditions precedent being met, at an agreed property value of JPY38.8 billion (S$474.7 million).
The agreed property value is approximately 4.4% lower than the independent valuation of JPY40,600 million (S$496.8 million) as at 28 May 2021.
The acquisition is underpinned by a ‘long lease expiry’ of 8.8 years, and is expected to provide a stable income stream for MNACT, the manager said in a press release.
MNACT shares are currently trading flat at S$1.03 each.
Sri Trang Gloves (Thailand) (SGX: STG)
Sri Trang Gloves (Thailand) Public Company Limited shares opened 2.2% lower on Monday, following an update on Covid-19 infections at its factories last Friday (28 May 2021).
The company said there were a total of 41 daily-wage employees who had tested positive for Covid-19, as of 28 May 2021. Of these, three employees were from the Surat Thani Factory while the remaining 38 employees had worked at the Trang Factory.
Earlier this month, the glove manufacturer was forced to close some of its production sites as a result of infections among workers.
Sri Trang Gloves has since shifted some production to the Hat Yai Factory, Songkhla, which it says has the capacity to produce the same types of gloves as the Surat Thani and Trang Factories.
For now, the company believes that the situation ‘will be resolved in a timely manner’ and ‘does not anticipate a significant impact’ on its operations.
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